Hi Darren:
I was attracted to ModestNeeds, and still contribute monthly. It is superficially similar to Kiva, in that it is a web site where donors pool funds to help a particular person or family. The transparency is pretty good.
The major differences are:
- ModestNeeds gives grants, not loans (donors don't get the money back, and contributions are US tax-deductable)
- ModestNeeds clients are poor working people in the US and Canada. Most do not qualify for welfare.
- The grant is applied to a specific one-time emergency. No money is paid to the client, but to business they owe money to (i.e. landlord, auto repair shop, doctor, etc.) for the specific need.
- The client is lifetime limited to 2 grants.
- Not all applications are funded (funding rate this year is less than 50%). The donors can choose to distribute their contributions to the applications that are most appealing. The client can re-apply if their request is not funded.
- The authenticity of the client's request goes through an extensive investigation. The client must send a lot of documentation for verification.
- The grant amount is limited to one month's housing cost for the client.
- Presently, your donation is matched by a foundation, so you can allocate twice the amount you actually contribute.
- There is no ModestNeedsFriends, or details on which donors funded which applications. So the sense of being part of donor community does not exist. A donor community might be a very good idea for them! ModestNeeds has not had the explosive growth that Kiva has enjoyed.
Here is a recent testimonial from one of the clients:
Hello, I can't express how you have impacted our lives with your generosity. We are forever grateful for your assistance. We never imagined in our lives that we would ever be in a position to have to choose between putting food on the table and paying our bills. Our lives were forever changed when I lost my job of over 10 years and my wife's impending illness. During this time we had reached out for assistance and were met with denials from our city, county and state as well as the federal government. The process is not only demeaning, it is also embarrassing and when you reach the point where there are no options, the hopelessness is overwhelming. When we were made aware of modest needs, it renewed our optimism and when I received the email that it was granted, my heart filled with joy and you have provide our family with the boost we so desperately need during this time. Thank you for your assistance regarding this matter and god bless Dan http://www.modestneeds.org/